44. SIGNIFICANT EVENTS (CONTD.) (c) The step-up acquisition in OCM had resulted in the recognition of gain on deemed disposal of associate of RM1,000 at the consolidated financial statements, as disclosed in Note 19. The acquisition gain of RM9.5 million arose due to OCM’s advantageous negotiating position. The fair value of identifiable assets and liabilities of OCM at the date of step-up acquisition is as follows: Fair value recognised on acquisition RM’000 Plant and equipment 828 Trade and other receivables 35,984 Contract assets 23,106 Tax recoverable 420 Cash and bank balances 2,331 Trade and other payables (48,806) Net asset acquired 13,863 Purchase consideration 176 Add: Fair value of existing 30% equity stake in OCM 4,159 Less: Identifiable net assets acquired at fair value (13,863) Negative goodwill on acquisition (9,528) As a result of the business combination, the Company conducted a purchase price allocation and determined that the value of the contract listing resulting from the acquisition was negligible. Therefore, it was not recognised. The effect of the acquisition on cash flows was as follows: RM’000 Purchase consideration satisfied by cash (176) Cash and cash equivalent of the subsidiaries acquired 2,331 Net cash inflow on acquisition of the subsidiaries at acquisition date 2,155 The effect of the acquisition on the financial results of the Group from the date of acquisition to 31 December 2024 is as follows: RM’000 Revenue 4,571 Loss for the year (1) (d) On 29 November 2024, Edgenta Healthcare Management Sdn Bhd, a wholly-owned subsidiary of the Company entered into a Termination and Settlement Agreement with Konsortium ProHAWK Sdn Bhd (“KPSB”) to mutually terminate the Asset Management Services Agreement dated 19 May 2014 and for such Asset Management Services to be undertaken directly by KPSB. Notes to the Financial Statements For the year ended 31 December 2024 373 FINANCIAL STATEMENTS
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